Corporate Philosophy (Dream up the future) and ...
Transcript of Corporate Philosophy (Dream up the future) and ...
Corporate Philosophy (Dream up the future)
and Sustainability Management
ESG Briefing
Feb. 25, 2021
Shingo Konomoto
Chairman, President & CEO,
Representative Director, Member of the Board
Nomura Research Institute, Ltd.
1Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
1 Solving social issues through value co-creation
2 Efforts in FY2020
3 Building Sustainable Futures
2Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
The corporate philosophy of the NRI Group is “Dream Up the Future” and “Co-creation” with clients
Corporate StatementMission
To society:
Discerning new social paradigms and
assuming the role of implementing such
paradigms.
To clients:
Building customer trust and prospering
together with customers.
Business domain Company creating future society
Management
goals
Pursuing the maximization of corporate value
through "Navigation & Solution"
Action guidelinesContinuing never-ending challenges with
pride of true professionals
NRI Group Corporate Philosophy
3Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
NRI Group Sustainability Management and Future Vision
Sustained Growth of the NRI Group
NRI Group Sustainability Management (Medium-Term Management Plan 2019 to 2022)
Building Sustainable Futures
Solving social issues through value co-creation (CSV*2)
Materiality for sustainable growth
[Vision 2022 Numerical Targets]
Consolidated operating
profit (JPY billion) 100
Consolidated operating
profit margin 14% or more
Overseas sales (JPY billion) 100
ROE 14%
by driving new value.
Co-create a thriving future society
by effectively utilizing its
resources.
Co-create an ideal
society
by advancing its infrastructure.
Co-create a safe
and secure society
Corporate Philosophy “Dream Up the Future”
Compliance with laws, regulations
and risk management to increase
trust from society
Management of the information
systems that form social
infrastructure
Reduction of environmental
impact for preserving global
environment
Provision of opportunities
for all kinds of professionals
to take on challenge
*2 CSV: Creating Shared Value
*1 Continuously aiming for higher capital efficiency
*1
4Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
An age where the co-creation of 3 social values will be required more and more
NRI Group’s 3 Social ValuesKey NRI Initiatives for the
Post-COVID-19 World
Co-create a thriving
future society
by driving new value.
・Business Model Transformation
- DX consulting (analytics and structural reform)
- Digital finance, non-face-to-face services, remote
support
・Policy proposals for society & systems, information &
knowledge sharing
- NRI’s Proposals regarding COVID-19 Measures
Co-create an ideal
society
by effectively utilizing
its resources.
・Business platform migration
- Expand STAR adoption
・Business process transformation
- Delivery route optimization, AI ordering at stores
Co-create a safe and
secure society
by advancing its
infrastructure.
・IT infrastructure transformation
- Secure infrastructure supporting telecommuting
- Achieve zero trust networks
・Social infrastructure
- Individual numbers, promotion of cashless payments
Strive to create a future of continuous new value
generation that leadsto an abundant and
safe societywhere all benefit.
Strive to build a morelivable society for
all people by efficientlyutilizing society’s main resources
of manpower, goods, capitaland intellectual property
to develop dynamic,strong industry.
Strive to build a societysafe and secure from
accidents and disasters by strengthening cyber-security
for information systems andother core social infrastructure.
5Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
1 Solving social issues through value co-creation
2 Efforts in FY2020
3 Building Sustainable Futures
6Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Continuously monitoring the status of efforts for value co-creation
Social value Measures Status (Apr. to Dec. 2020)
Co-creating a
thriving future
society
Promote DX
Promote various DX projects such as non-face-to-face services, remote support, and EC.
Lead the digital transformation of companies.
KPI) DX related sales: 241.2 billion yen
Create new business models
Collaborate with external companies to create AI analysis systems and new DX consulting
services, etc.
KPI) Number of business partnerships (joint ventures, local government agencies supported,
etc.): 3
Provide social recommendations and
system proposals
Release NRI’s Proposals regarding COVID-19 Measures. Give proposals/recommendations
for the post-COVID-19 society.
KPI) 99 NRI articles in the 5 major newspapers
Co-create an ideal
society
Business platform service expansionDevelopment of shared online services such as the adoption of STAR at major clients
KPI) Business platform sales of 76.2 billion yen
Generate environmental benefits for
clients through business platforms
Selected for "DJSI World" for three consecutive years and the "CDP A List" for two
consecutive years
KPI) Client CO2 emission reductions through shared online services: 61,648 tons
Help build IT infrastructure to create
an ideal society
Collaborate with Oracle to support further advancement of IT infrastructure by expanding the
use of the public cloud
KPI) Scale of cloud and data center services business: +4% year-on-year
Contribute to reforms for the greater
good
Promote operational reform projects such as distribution/delivery optimization utilizing data
science
KPI) Scale of operational reform services (DX1.0ab) business: +3% year-on-year
Co-creation of a
safe and secure
society
Help upgrade the social
infrastructure
Digitalization of end-of-year adjustment via the utilization of the individual number portal
and the e-NINSHO public personal authentication system
KPI) Scale of public services business: +21% year-on-year
Contribute to information securityEnhance our zero-trust business to contribute to security in the age of the cloud
KPI) Investment in security and safety: 5.3 billion yen
Maintain the quality of systems in
operation
Implement/continue training for large-scale failure response at data centers in remote
environments
KPI) Number of information system incidents with severe financial/social impact: 0
7Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Provided proposals related to measures against COVID-19and recommendations for the post-COVID-19 society.
“Proposals regarding COVID-19 Measures“ were posted to the top of
our website to share 67 proposals for society
NRI website"We are having problems with telecommuting but also seeing how it can
be effective"(Survey on the lifestyle impact of the spread of COVID-19 infections)
"Take this opportunity to accelerate the utilization of IT and digital technologies"
(CIO survey regarding the impact of COVID-19)
"Remote work is declining, but don't give up on it because
of your experience during the state of emergency"
(Survey on work from home due to the spread of COVID-19 infections)
・・・
(Mar. to Sep. 2020)
Co-create a thriving future society
Co-create an ideal society
Co-create a safe and secure society
8Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Contributing to the reduction of client CO2 emissionswith shared online services
CO2 emissions can be reduced by 73.9% compared to when clients build and operate optimal systems by themselves
Further strive for a 100% reduction by 2050 via the use of renewable energy to power our data center
NRI business platform services
Shared online services<NRI’s data centers>
Client companies
THE STAR BESTWAY
…
…
Brokerage A Mutual Fund B Bank C Trust Bank D
CO2 reduction effects via shared online services
Contribute to government pledge
for zero greenhouse gas emissions by 2050
When clients operatesystems individually
Shared online services
Reduced by 73.9%
NRI environmental targets (compared to FY2013)
Reduce CO2 emissions
also at client companies
via shared use of systems
0
20
40
60
80
100
120
2013 2020 2030 2040 2050(Fiscal year)
(1,000 t-CO2)
Red
uci
ng
gre
en
ho
use
gas
em
issi
on
s
(Sco
pe 1
+ 2
)
Result
Reduced by 44%
Reduced by 100%Reduced by 72%
Co-create a thriving future society
Co-create an ideal society
Co-create a safe and secure society
Revised to 1.5°C target
(registered by SBT)
9Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Promote the individual number cards essential for a digital society
Share policy advice
to promote social infrastructure
Promote infrastructure via the culmination
of private sector knowledge
Utilize individual number cards as economic infrastructure
(Financial information technology focus April 2020)
• In Taiwan, the real names of face mask purchasers
are recorded with health insurance cards. Prevent
social disorder
• Being able to identify individuals with individual
number cards will bring dramatic changes to Japan
in the future
Payment infrastructure for post-COVID-19 Japan
(Knowledge creation and integration September 2020
• The main reason for delays in delivering face masks
and payments was problems with individual
authentication and identification
• Two things are essential for effectively utilizing the
individual number system as payment infrastructure:
(1) Loosening of regulations and (2) Collaboration
with private services such as financial institutions
Achieve digitalization of life insurance expense
deduction certificates for end of year
adjustment/income tax returns by utilizing
the individual number portal in collaboration
with life insurance companies
Promote cashless payments and the popularization
of individual number cards via assistance of
outsourcing regarding the government’s
individual number point business.
Individual authentication services utilizing
individual number cards
Provide "e-NINSHO" as a personal authentication
method for the LINE/LINE Pay service
Co-create a thriving future society
Co-create an ideal society
Co-create a safe and secure society
10Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
1 Solving social issues through value co-creation
2 Efforts in FY2020
3 Building Sustainable Futures
11Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Transform society via DX, in addition to clients and industries
DX2.0Business model
transformation
Establishing unprecedented digital services
• Creation of new cross-industry platforms
• Creation of new client business models and ecosystems
DX1.0
Process
transformation
Digital front officeDigitalize actions for end users
• D2C*, CRM, digital marketing
Digital back officeDigitalize actions within client companies
• SCM reforms, AI/RPA, business platforms
Infrastructure
transformation
Enhance infrastructure such as cloud/security infrastructure• Cloud migration assistance, managed services, cybersecurity
business
*D2C stands for Direct to Consumer , or direct sales through e-commerce, etc.
DX3.0Paradigm
transformation
Solving social issues through co-creation with various
partners
• Regional revitalization via digitalization and
entrepreneurial assistance
• Low carbon transformation and resource saving via digital
solutions
Social
transformation
Client/industry
transformation
12Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
Enhance/speed up Con-Solution to promote DX3.0
Carbon neutrality
• Visualization/central management,
etc. of CO2 emissions in business
activities and products/services
Promote DX3.0 to create a sustainable future society
Circular economy
• Save resources by tracing product
usage information and resource
utilization after product use, etc.
Food value chain
• Digital infrastructure for producers
and common platforms for ordering
and distribution, etc.
Example of initiative themes
*Con-Solution means the continuous co-creation of value via the collaboration between consulting and IT solutions
Identify social
Issues and
conceptualize
solutions
(enhance up-front
investment)
Building business
hypotheses via
external networking
(also utilize capital tie-ups)
Creation of
new business
in growth
sectors
Improve capability to achieve reforms
(strengthening the organizational structure
of NRI Digital and bolstering the hiring and
cultivation of DX human resources)
Launch/speed
up businesses
Internal External cooperation
Approach
Go
al
13Copyright(C) Nomura Research Institute, Ltd. All rights reserved.These materials were prepared for the solo purpose of providing information to use as reference in making
investment decisions, and are not intended as a solicitation for investment.
NRI itself will attain sustained growth by helping to create a sustainablefuture society
Sustained Growth of the NRI Group
NRI Group Sustainability Management (Medium-Term Management Plan 2019 to 2022)
Building Sustainable Futures
Solving social issues through value co-creation (CSV*2)
Key issues for sustainable growth
[Vision 2022 Numerical Targets]
Consolidated operating
profit (JPY billion) 100
Consolidated operating
profit margin 14% or more
Overseas sales (JPY billion) 100
ROE 14%
by driving new value.
Co-create a thriving future society
by effectively utilizing its
resources.
Co-create an ideal
society
by advancing its infrastructure.
Co-create a safe
and secure society
Corporate Philosophy “Dream Up the Future”
Compliance with laws, regulations
and risk management to increase
trust from society
Provision of NRI quality
to support a safe
and secure information society
Creation of a future low
environmental impact society
Provision of opportunities
for all kinds of professionals
to take on challenge
*2 CSV: Creating Shared Value
*1 Continuously aiming for higher capital efficiency
*1
Activities of the Value Co-Creation
Committee
by Matsumoto/Aizawa
ESG activities at the NRI Group
by Yokoyama/Honda